Small retail investors have become increasingly interested in trading foreign currency, and until now there’s been no way to see how well those small investors are succeeding. New disclosures were required to reveal the success – and there’s not much of it.

This information has only recently become available, as part of financial reform legislation passed in July 2010. Each quarter, dealers must disclose how many retail accounts they have, and how many of those accounts are profitable. That information has been added to each firm’s risk disclosure statement. The regulations also limit how much leverage customers can access: The industry used to commonly allow retail customers to leverage themselves as much as 200-to-1; the new limit is 50-to-1.

SmartMoney.com examined the recent disclosures of the four biggest retail forex brokerages, representing 95,000 accounts and the majority of the retail forex universe. Of the 16 firms registered with the National Futures Association, only five have more than 10,000 accounts.

In the fourth quarter of 2010, only 35% of the 33,000 accounts examined made money. The results vary widely: Oanda, one of the five biggest brokerages, had the highest winning percentage, with 43% of its 48,866 accounts making money. FXCM had the lowest, with 23% of its 18,000 investors making money.

Oanda suggested its customers may be more successful for a number of reasons: The brokerage pays interest on account balances, believes its spreads are tighter and charges no inactivity fees. But they don’t really know why for sure.

FXCM spokeswoman Jacyln Sales said: “Until recently, the calculation methods used weren’t uniform and FXCM used a more conservative method than others. We think next quarter’s numbers will be more reflective of the truer picture.”

Critics say the low success rates prove that individual traders are at a huge disadvantage in a round-the-clock, volatile currency markets. Currency trades 24 hours a day, 7 days a week, and most people have to sleep.

The markets are also characterized by small, rapid price movements, and even if an individual trader were able to move fast enough to keep up, when transaction costs are taken into account.

“The math just doesn’t make sense,” says Oliver Pursche, the president of Gary Goldberg Financial Services. “It’s probably not much different than sitting down at the blackjack table in Atlantic City or Vegas and expecting to beat the house.”

Forex firms say the success rates for retail traders are comparable to active traders in other markets. The returns of stock traders have not been studied in recent years, but a small body of older research seems to support that argument.

One 2003 study found that only about 20% of day traders were “more than marginally profitable,” and almost twice as many investors who practice day trading lost money as made it.

Another study, in 2004, focused on day traders in Taiwan, and found that 80% lost money. Some very active traders appeared to execute successful trades, but very few were sophisticated enough to make a net profit after transaction costs were taken into account.

The Taiwan study identified a small group of equity day traders who consistently made money, and that’s essentially how retail forex firms describe their customer base. “There is one segment that has really figured out how to trade and be successful,” says Todd Crosland, the CEO of Interbank FX, where 28% of 13,669 accounts were profitable in the fourth quarter. About 25% of their customers stay with the firm for seven years or longer.

Many individual traders are drawn to volatile markets in search of quick profits, but they can be difficult to navigate. It can become very dangerous very quickly.

And of course, choosing a dealer with a higher percentage of profitable accounts doesn’t always guarantee success. Aspiring traders can make other moves to limit losses, like taking advantage of the educational materials and demo or practice accounts that most dealers offer.

At Interbank FX, clients who practice — either through a practice account or by making very small trades — appear to be more profitable when they up their stakes.

Traders can also watch out for common pitfalls that can deepen losses, such as holding on to losing positions for too long. For example, in 2010, Oanda’s clients exited 55% of their positions profitably, but many still lost money overall by holding losing positions too long, and exited winning positions too quickly, with deeper losses as a result.

Retail investors can also stem losses by limiting the amount of leverage they take on. Dealers’ risk disclosure statements disclose that trading with borrowed money means that investors could end up having to pay the brokerage for ill-timed investments on top of money lost to trades.

Read more:

http://en.wikipedia.org/wiki/Foreign_exchange_market

Forex Investors Take a Bath – SmartMoney.com http://www.smartmoney.com/investing/economy/forex-investors-take-a-bath-1296499822193/#ixzz1Cwe3BRjT

Company Name: Auction For Income      Whois Info: Private

I came across this name because my son had seen the infomercial and suggested we buy it for him for Christmas. As always, I Google the product before purchasing under “the name“, the “name + complaints” and the “name + reviews“.

Dave Espino is a prominent Internet marketing expert with eBay as his latest expertise; his products deal with how to make money on eBay.

Dave Espino claims that he started learning about business when he was 7 years old. His family started a small business when they settled in the USA. When he attended a real estate seminar at age 19, the speaker affected him so much that he decided he could have a similar business. By age 22 he was the owner of several rental properties.

Over the years he has been a marketer for various financial services including term life insurance, mutual funds, mortgages and IRAs and counseled finance services companies on how to better market their products and boost sales. His strategies and thoughts are echoed in his three most famous eBooks – Beyond eBay, Life in the Dot Com Lane and Business Cubed.

Currently, he has a Hotwheels business on the Internet, called RedlinesOnline.com, a portal for vintage Hotwheels collectors to get the rarest of cars from the collection. He is also much involved in his new system titled Auctions for Income.

The Auctions for Income product has both positive and negative reviews. The course has good informational videos about beginning to trade on eBay and carrying on from there. It also has a satisfactory amount of help for people who are just starting out with the system. It acts well as a guidebook. But, even so, there are some shortcomings, including the fact that most of the instructional information can be found on the eBay site itself.

The course mentions that money can be made on eBay by selling products at high cost on eBay, but the basic problem with that is the fact that there are other people who are selling the same products are lower prices. Even if the prices are dropped, the profits aren’t all that substantial. Making money on eBay is difficult with fees from shipping, eBay and Paypal eating into profits.

An interesting aspect is the hidden feature of the Whois information for their website. Whois lists the owner and their contact information. The owner of the “Dave Espino” website has purposely made their Whois information private. This could mean they have something to hide.

eBay is successful for those who sell high-profit “niche” items, e.g. collectible Hotwheels, or “vintage microphones.” Other than that eBay is an international flea market, with professionals collecting the biggest profits. The course offers information on where to find products to sell and companies that will drop ship items you sell. It also gives information on how to get these to eBay to sell.

User Comment:  I soon discovered why the INITIAL material seemed so elementary and fragmented, it was apparently designed that way on purpose. It wasn’t me, the information WAS designed that way and a salesman from Dave Espino’s office admitted that, when he called wanting to “help” me! The purpose of the call was to see if I was “qualified” to be part of a “special” Auctions for Income ™ program. The salesman/coach promised to make me an Ebay Stud, but there was only one catch. This “expert” help had a price tag of $2000 for starters. He explained that there would be additional LARGE expenditures, I mean after all, I am investing in my future!

I have gotten information from A Lot of people who actually did  “qualify” for this assistance and not one of them told me they made any money. On the contrary, they wanted their money back. They got the initial purchase price back, but were informed that the small print explained that anything beyond that was Non-Refundable!

Recently a young couple called me and they were considering a $5200 investment in Auctions for Income ™ and Beyond Ebay ™, but finally got their wits about them and did not do it.

In talking to several people who used to do very well on Ebay I was told that making a living or just a supplemental Income has become much more difficult. Because of ALL the experts selling old and outdated information and all the Drop Shipping companies offering “simple and easy” get-rich-quick Ebay advice it is now over saturated.

I do believe that you can make money on Ebay, but not as much as you once could. Desperate people drop their prices cutting so far into the profit margin that it becomes an exercise in futility to try and make a living from it. Now if you have some VERY rare items or just want to sell something that is lying around the house, great, but there are much better ways to make money on the internet. The few people I know of that are making a small income from ebay tell me they’re spending up to eleven hours a day at their computer to make less money than they could make at a day job.

User Comment:  Do you know who’s really making the most money on ebay?  You guessed it, the people selling e-bay systems and courses like auction for income.

User Comment: The only bad part was that when I saw the ad on tv, they made it seem like you would earn thousands of dollars and that is just not the case. To be successful on Ebay you must have technique, and good business sense. Also after I bought it, someone from his office called and told me he would help me grow my business for $4000 dollars. Way too much money for someone starting out. I Returned His “Auctions For Income” Course For a Refund

User Comment:  I read through all the materials and discovered it was meant for people who had NEVER sold on Ebay, Or who were just starting. The ads never told you that if you had been selling before then the info would probably be useless to you. I did not read or learn anything that I did not know before. When I tried to get my money back they never responded. Advice is only get this IF you are going to start selling on Ebay and have never sold there before.

Bottom line:  When the buyer tries the system and is making few or no sales and little profit, a “financial consultant” calls and offers help for an investment in the thousands of dollars, with the promise that more will be needed. Therein lies the scam. After paying out many dollars for help, it is not the company’s fault that the buyer did not succeed.

My son is not getting this course for Christmas.

The IRS offers some help on choosing a tax preparer.

http://www.irs.gov/individuals/article/0,,id=133088,00.html

From the IRS —

It is important for taxpayers to find qualified tax professionals if they need help preparing and filing their tax returns.

• Unqualified tax preparers may overlook or miss legitimate deductions or credits that could cause their clients to pay more tax than they should.
• Unqualified preparers may make costly mistakes like taking illegitimate deductions or credits that cause their clients to initially pay less tax than they should but later incur assessed deficiencies, penalties, and interest when the errors are uncovered. 

Most reputable preparers will ask to see your receipts and will ask you multiple questions to determine your qualifications for expenses, deductions and other items. By doing so they have your best interest in mind and are trying to help you avoid penalties, interest or additional taxes that could result from an IRS examination.

Remember, no matter who prepares a tax return, the taxpayer is legally responsible for all of the information on that tax return.

Here are some suggestions to consider when hiring a tax professional:

Avoid preparers who:

• claim they can obtain larger refunds than other preparers. If your returns are prepared correctly, every preparer should come up with substantially similar numbers. 
• inflate personal or business expenses, false deductions, unallowable credits or excessive exemptions on returns prepared for their clients. Preparers may, for example, manipulate income figures to fraudulently obtain tax credits, such as the Earned Income Tax Credit.
• guarantee results and refunds.
• base fees on a percentage of the amount of the refund. A practitioner may not charge a contingent fee (percentage of your refund) for preparing an original tax return.
• delegate your return down to someone with less training or some unknown worker. 
• exports your return to a foreign country for preparation.  Foreign countries do not have the same security and privacy laws as the United States nor is there any recourse should your information be compromised as a result of lax or nonexistent privacy procedures.

Choose a preparer who:

• you will be able to contact and be responsive to your needs.  You should know exactly who works with your tax matters at all times and how to contact that person.  Ask who will actually prepare the return before engaging services. 
• has the proper credentials meet your needs or if your state mandates licensing or registration requirements for paid preparers.   Only attorneys, CPAs and enrolled agents can represent taxpayers before the IRS in all matters including audits, collection actions and appeals. Other return preparers may represent taxpayers only in audits regarding a return that they signed as a preparer. 
• signs the tax return and provides a copy
• has no questionable history with the Better Business Bureau, your state’s board of accountancy for CPAs, your state’s bar association for attorneys, the IRS Office of Professional Responsibility (OPR) for enrolled agents or the oversight agency in states that license or register tax preparers (as of 2008, California and Oregon are the only two states that regulate paid tax preparers). 

Ask if the preparer is affiliated with a professional organization that provides or requires its members to pursue continuing education and holds them accountable to a code of ethics.

Check IRS.gov for information regarding abusive shelters and other tax schemes and scams. Remember, if it sounds too good to be true, chances are it is.

The IRS can help many taxpayers prepare their own returns without the assistance of a paid preparer. Before seeking a paid preparer, taxpayers might consider how much information is available directly from the IRS through the IRS Web site such as: 

• e-file for Individual Taxpayers
• Free File
• Free Tax Return Preparation For You by Volunteers

Unfortunately, unscrupulous tax return preparers do exist and can cause considerable financial and legal problems for their clients. Examples of improper actions by unscrupulous preparers include the preparation and filing of false income tax returns that claim inflated personal or business expenses, false deductions, unallowable credits or excessive exemptions.

Even if someone else prepares a tax return, the taxpayer is ultimately responsible for all the information on the return. For that reason, taxpayers should never sign a blank tax form. And they should review the return before signing it and ask questions on entries they don’t understand.

In some situations, the client, or taxpayer, may not know of the false expenses, deductions, exemptions and/or credits shown on his or her tax return. However, when the IRS detects a fraudulent return, the taxpayer — not the return preparer — must pay the additional taxes and interest and may be subject to penalties.

The IRS Return Preparer Program focuses on enhancing compliance in the return-preparer community by investigating and referring criminal activity by return preparers to the Department of Justice for prosecution. The IRS can also assert appropriate civil penalties against unscrupulous return preparers.

Excerpts from public record documents on file show the following examples.

Preparers have been sent to prison for anywhere from two to six years and ordered to pay fines and restitution for defrauding the government and tax evasion by preparing false tax returns in order to create or to increase income tax refunds for their clients, and diverting false refunds to their own accounts.

Preparers have also been sentenced for posing as a CPA, preparing false tax returns, using their personal information and forging their signature in identity theft schemes.

Tax scams have included “experts” “decoding” the IRS code to convince clients they were not liable for federal income tax, “finding” deductions the IRS do not want taxpayers to know about, setting up sham nonprofit corporations to avoid taxes and other “zero tax” schemes. 

Tax evasion is a risky crime, a felony, punishable by five years imprisonment and a $250,000 fine.  Audits can lead to investigations and trials.  Relatively speaking, the number of tax evasion trials is relatively few, but the IRS has a conviction rate of 81-89%, and the average sentence is 18 months. 

The IRS is very accommodating when it comes to paying taxes, especially in this recession.  But if fraud is suspected or uncovered, they can be your worst enemy. 

Report suspected tax fraud and abusive return preparers by completing Form 3949-A and mailing it or a letter with similar information to:

Internal Revenue Service
Fresno, CA 93888

Related Links:
Tax Return Preparer Fraud
Choosing a Tax Preparer ( audio transcript; video)

The Internal Revenue Service has issued several recent consumer warnings on the fraudulent use of the IRS name or logo by “scamsters” trying to gain access to consumers’ financial information in order to steal their identity and assets. When identity theft takes place over the Internet, it is called phishing.

How to Spot a Scam

Many e-mail scams are fairly sophisticated and hard to detect. However, there are signs to watch for, such as an e-mail that:

• Requests detailed or an unusual amount of personal and/or financial information, such as name, SSN, telephone number, bank or credit card account numbers or security-related information, such as mother’s maiden name, either in the e-mail itself or on another site to which a link in the e-mail sends the recipient.
• Dangles financial bait to get the recipient to respond to the e-mail, such as mentioning a tax refund or offering to pay the recipient to participate in an IRS survey.
• Threatens a consequence for not responding to the e-mail, such as additional taxes or blocking access to the recipient’s funds.

Many of the e-mail scams originate in other countries and are written by non-native English speakers.

• They get the Internal Revenue Service or other federal agency names wrong.
• Use incorrect grammar or odd phrasing.
• Use a really long Internet address in any link contained in the e-mail message or one that does not start with the actual IRS Web site address (www.irs.gov).

Note: To see the actual link address, or url, move the mouse over the link included in the text of the e-mail. ”

Suspicious eMails (Phishing)

Phishing (as in “fishing for information” and “hooking” victims) is a scam where Internet scamsters send e-mail messages to trick unsuspecting victims into revealing personal and financial information that can be used to steal the victims’ identity.

Current scams include phony e-mails which claim to come from the IRS and which lure the victims into the scam by telling them that they are due a tax refund or other financial reward.

The Internal Revenue Service reminds consumers to avoid identity theft scams that use the IRS name, logo or Web site in an attempt to convince taxpayers that the scam is a genuine communication from the IRS. Scammers may use other federal agency names, such as the U.S. Department of the Treasury. 

In an identity theft scam, a fraudster, often posing as a trusted government, financial or business institution or official, tries to trick a victim into revealing personal and financial information, such as credit card numbers and passwords, bank account numbers and passwords, Social Security numbers, telephone numbers and more. Generally, identity thieves use someone’s personal data to steal his or her financial accounts, run up charges on the victim’s existing credit cards, apply for new loans, credit cards, services or benefits in the victim’s name and even file fraudulent tax returns (for the refunds). 

Refund Scam

The bogus e-mail, which claims to come from the IRS, tells the recipient that he or she is eligible to receive a tax refund for a given amount. It instructs the recipient to click on a link contained in the e-mail to access and complete a form for the refund.

The form requires the entry of personal and financial information. The refund scam is the most common one seen by the IRS. Several recent variations on this scam have claimed to come from the Exempt Organizations area of the IRS. Some others have included the name and purported signature of a genuine or a made-up IRS executive.

Taxpayers do not have to complete a special form to obtain a refund. Taxpayer refunds are based on the tax return they submit to the IRS.    

The IRS does not discuss tax account matters with taxpayers by e-mail.

The IRS also urges consumers to avoid falling for the following recent schemes:

Making Work Pay Refund

This phishing e-mail, which claims to come from the IRS, references the president and the Making Work Pay provision of the 2009 economic recovery law.  It says that there is a refundable credit available to workers, consumers and retirees that can be paid into the recipient’s bank account IF the recipient registers their account information with the IRS. The e-mail contains links to register the account and to claim the tax refund.

In reality, most taxpayers receive their Making Work Pay tax credit, which was designed for wage earners placed in their paychecks as a result of decreased tax withholding, not as a lump sum distribution from a federal fund.  Consumers and retirees who are not wage earners are not eligible for this tax credit.

Lottery Winnings , Inherited Funds and other Cash Consignments

In this phishing scheme, recipients receive an e-mail claiming to come from the U.S. Department of the Treasury notifying them that they will receive millions of dollars in recovered funds or lottery winnings or cash consignment IF they provide certain personal information, including phone numbers, via return e-mail. The e-mail may be just the first step in a multi-step scheme, in which the victim is later contacted by telephone or further e-mail and instructed to deposit taxes on the funds or winnings before they can receive any of it.

Or, they may be sent a phony check of the funds or winnings and told to deposit it BUT also pay 10 percent in taxes or fees. Thinking that the check must have cleared the bank and is genuine the victims pay the fees to the scammers, then receive notification and many more fees from their bank when the check is discovered to be fraudulent.

Form W-8BEN

In this scam, fraudsters modify a genuine IRS form, the W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, to request detailed personal and financial information.

This could include nationality, passport number, bank account and PIN numbers, spouse’s name and mother’s maiden name, or other personal or financial information or security measures for their financial accounts. The scammers may use the genuine form number and name or may make up a new form number, such as W-4100B2.

They either e-mail or fax the form or letter. If only a letter, the letter itself contains the request for the personal and financial information. The letter, which claims to come from the IRS, states threatens the recipient with additional taxes unless he or she quickly faxes the required information to the number provided by the scammer.

In reality, taxpayers file the genuine Form W-8BEN with their financial institutions, not with the IRS. Additionally, the genuine W-8BEN does not request the taxpayer’s passport number, bank account number, security or similar information.

In closing, we must remember that email is like sending a postcard through the mail.  All along the way, unsecured email passes through computer servers where they may be stopped and read.  Think about personal information you would put on a postcard. 

Even providing telephone numbers is dangerous, because some scammers are able to bill your personal telephone bill with their illegal charges.

http://www.irs.gov/newsroom/article/0,,id=155682,00.html

$10,650,000.00 (Ten Million, Six Hundred and Fifty Thousand United States Dollars). 

Wow, I don’t even have answer hard questions like I would on the “Millionaire” TV show, or buy a bazillion Powerball tickets.  But by sending them $220, they will ship the card with its balance to me. 

Ten million dollars is a boatload of money.  If they would have made the amount something like ten or twenty thousand dollars, it might even be believable to some adults. 

The key to this scam is reading it.  The director of the FBI would certainly have had a letter like this proofread and spell checked. 

The spelling and grammar fall far short from any letter sent from a business, especially the FBI.  The writer doesn’t know enough to capitalize United States (giving a hint of foreign source)

Some aspects of this letter were very amusing to me.  They are specifically targeting me, yet the letter is addressed to BENEFICIARY.  Director Mueller refers to me as a “dear citizen,” (and I never even met him) and wishes me “Best Regards” (to who?).  He forgot the zip code of the FBI building.  And when would an official letter contain the term “hitch free?”

It is interesting that they warn you any message that doesn’t come from their email address should not be replied to and should be disregarded accordingly for security reasons; just so you don’t get persuaded not to reply to the scam.

The reason they ask for a phone number instead of a credit card is that the $220 (and much more) will suddenly appear on your phone bill, and I’m not sure if fraud rules extend to the phone bill, since a bank does not issue the invoice.  

Mr. Gary Huston, of the DIRECTORS FOR FOREIGN OPERATIONS AND SWIFT CARD PAYMENT CENTRE apparently does not have an office phone, since he lists his cell phone number.  It would be interesting to see if anyone answers (be careful, it is an international call and once they call, they have your phone number to use illegally and bill). 

I hope you enjoy reading this letter; it gave me a few chuckles.

ATTENTION: BENEFICIARY,

We believe this notification met you in a very good present state of mind and health. The Federal bureau of investigation (FBI) Washington,D.C in conjunction with some other relevant Investigations Agencies here in the United states of America have recently been informed through our Global intelligence monitoring network that you presently have a transaction going on with the DIRECTORS FOR FOREIGN OPERATIONS AND SWIFT CARD PAYMENT CENTRE as regard to your over-due contract payment which was fully endorsed in your favor accordingly.

It might interest you to know that we have taken out time in screening through this project as stipulated on our protocol of operation and have finally confirmed that your contract payment is 100% genuine and hitch free from all facet and of which you have the lawful right to claim your fund without any further delay. Having said all this, we will further advise that you go ahead in dealing with the DIRECTORS FOR FOREIGN OPERATIONS AND SWIFT CARD PAYMENT CENTRE accordingly as we will be monitoring all their services with you as well as your correspondence at all level.

In addition, also be informed that we recently had a meeting with the British GOVERNMENT AND DIRECTORS FOR FOREIGN OPERATIONS AND SWIFT CARD PAYMENT CENTRE, in the person of The Prime Minister Gordon Brown and Sir Paul Stephenson along with some of the top officials of the ministry regarding your ATM card and they told me that the total sum in the ATM card is $10,650,000.00 (Ten Million, Six Hundred and Fifty Thousand United States Dollars) and they told me that the only thing that is holding your ATM card is the shippment fee ($220) . They also told us that the only problem they are facing right now is that some unscrupulous element are using this project as an avenue to scam innocent people off their hard earned money by impersonating the Executive Governor and the DIRECTORS FOR FOREIGN OPERATIONS AND SWIFT CARD PAYMENT CENTRE.

We were also made to understand that a lady by the name Mrs. Joan C.Bailey from OHIO has already contacted them and also presented to them all the necessary documentations evidencing your claim purported to have been signed personally by you prior to the release of your contract fund valued at about US$8,000,000.00 (Eight million united states dollars),but the Barclays Bank office did the wise thing by insisting on hearing from you personally before they go ahead on wiring your fund to the Banking information which was forwarded to them by the above named Lady so that is the main reason why they contacted us so as to assist them in making the investigations.

We were further informed that we should warn our dear citizens who must have been informed of the contract payment which was awarded to them from Barclays Bank, to be very careful prior to this irregularities so that they don’t fall victim to this ugly circumstance. And should in case you are already dealing with anybody or office claiming to be from the DIRECTORS FOR FOREIGN OPERATIONS AND SWIFT CARD PAYMENT CENTRE, you are further advised to STOP further contact with them in your best interest and then contact Immediately the real office of the DIRECTORS FOR FOREIGN OPERATIONS AND SWIFT CARD PAYMENT CENTRE

We advice you to send the sum of $220 to tham so that they can ship you ATM card to you with out any delay and also you have to send to them your information that you want him to ship your ATM card to. Find below his contact address that you will contact and send the sum of $220 to them at once.

NAME: MR. GARY HUSTON
OFFICE ADDRESS: DIRECTORS FOR FOREIGN OPERATIONS AND SWIFT CARD PAYMENT CENTRE,
15th/16th New Scotland Yard,Broadway,London,SW1H 0BG,UNITED KINGDOM
Email : huston.swiftcent@live.co.uk
Cell  : +447956337992

NOTE:

In your best interest, any message that doesn’t come from the above email address should not be replied to and should be disregarded accordingly for security reasons. Meanwhile, we will advise that you contact the DIRECTORS FOR FOREIGN OPERATIONS AND SWIFT CARD PAYMENT CENTRE immediately with the above email address and request that they attend to your payment file as directed, so as to enable you receive your ATM card.

To this effect, you are required to reconfirm and authenticate the information below for certainty and onward processing and release of your ATM card as we will not be held liable for any wrong payment.

YOUR FULL NAME:
COUNTRY OF RESIDENCE:
YOUR PHONE NUMBER:
SEX:
AGE:

Ensure you follow all their procedures as required by them as that will further help hasten up the whole procedures as regard to the cliam of your ATM card. Also have in mind that the DIRECTORS FOR FOREIGN OPERATIONS AND SWIFT CARD PAYMENT CENTRE equally have their own protocol of operation as stipulated on their banking terms, so delay could be very dangerous. Once again, we will advise that you contact them with the above email address and make sure you forward to them the sum of $220 for the shippment only. all the necessary information which they may require from you prior to the release of your ATM card to you accordingly.

All modalities has already been worked out even before you were contacted and note that we will be monitoring all your dealings with them as you proceed so you don’t have anything to worry about.

All we require from you henceforth is an update so as to enable us be on track with you and the DIRECTORS FOR FOREIGN OPERATIONS AND SWIFT CARD PAYMENT CENTRE. Without wasting much time, we will want you to contact them immediately with the above email address so as to enable them attend to your case accordingly without any further delay as time is already running out.

Should in case you need any more information in regard to this notification, feel free to get back to us so that we can brief you more as we are here to guide you during and after this project has been completely perfected and you have received your ATM as stated.

Thank you very much for your anticipated co-operation in advance as we earnestly await your urgent response to this matter.

Best Regards,

Robert S.  III
Federal Bureau of Investigation
J. Edgar Hoover Building
935 Pennsylvania Avenue,
NW Washington, D.C.  (no zip code?)

In his address, there were many other accusations.  Personally, I prefer government lawmakers who accurately quote facts rather than half-truths, as opposed to working to sway their audience by half-truths and mud slinging that attempt to create fear. 

I respect that both sides have their own agenda and arguments, but I prefer to make up my own mind based on facts and findings.  Politicians rely on people adopting what they tell them without checking anything out, like that TV commercial where the car salesman says, “I have a note from the previous owner that this car runs great!”  

I am independent when it comes to politics, but I took exception to the content of this video.

It should be kept in mind that Senator Coburn manipulates his audience in this speech written for him by his party speechwriters.

It should be noted that Senator Coburn is also a medical doctor. 

A transcript of the address and a link to the video are included at the end of this post.  Make up your own mind. 

Coburn said, “By an overwhelming margin American people are telling us to scrap the current bills …”

“Public opinion on health care reform in the United States is mixed. A majority of Americans express a desire for health care reform because they see it as too expensive and because they perceive that insurance companies avoid meeting health costs through coverage exclusions, caps, and co-pays. They also express concern that the system as a whole does not cover everyone and that many people are under-insured or uninsured. A majority support the creation of a government-run insurance plan to compete with private insurers, known as a public option, and a significant majority support a single-payer health care system.”

2010 polling results: “Rasmussen Reports found Americans opposing the Congressional bills by a 15-point margin, 56% vs. 41%.  According to Rasmussen Reports in January 2010, 10% of the American public have withdrawn their support from leading Congressional proposals since June 2009, with a majority opposing them since November 2009. In June 2009, 50% were in favor vs. 45% opposed, but in January 2010, support had dropped to 40% and opposition had increased to 55%.

Hardly an overwhelming margin, and an unfounded inference that the plans should be scrapped.

Coburn said, “… will lead to a government takeover of Health Care …

This is a scare slogan, a tactic raising specters of communism and socialism and is simply untrue.  However, history has shown us, a lie repeated often enough will eventually be perceived as the truth. 

The legislation under discussion would extend coverage care to tens of millions of uninsured Americans while cracking down on insurance company practices such as denying coverage on the basis of pre-existing medical conditions.  This is what Republican critics attack as a government takeover of health care.  Insuring these “not-so-profitable” peopel will financially hurt their big business sponsors.    

Coburn said, ” … even before the summit took place the majority in Congress signaled its intent to reject our offers to work together.” 

I would be happy to hear what those signals were to make up my own mind.  What I continually hear is the majority asking the Republicans for input and ideas. 

Coburn said, “they want to use procedural tricks and backroom deals to ram through a new bill that combines the worst aspects of the bills the Senate and House passed last year.” 

Here is an introduction to the infamous “they,” meant to suggest the dark forces, linked to the previous specter of communism and socialism. 

Here also is the well-established three-punch rhetoric trick, meant to reinforce the evil things the dark forces will pull; (1) “procedural tricks and backroom deals”, (2) “ram through a bill”, (3) “combines the worst aspects of the bills … passed last year.” 

New York Times columnist Bob Herbert wrote almost the exact phrase. 

There are no procedural tricks in passing a bill according to Senate rules; just wailing from those who don’t get their way.  A procedural trick is a lone Republican, objecting to and stopping the extension of unemployment benefits to thousands, because he doesn’t like what it adds to the deficit.  A wave of procedural tricks are being prepared by Republicans to stop further progress on healthcare.  

As far as passing a bill that “combines the worst aspects of the bills … passed last year,” would it be too much to tell Coburn’s audience what they are?  No, because they are the worst to the Democrats, and perhaps only them.  

Coburn said, “The American people have rejected the majority’s plan for good reason.”

There’s that reinforcing rhetoric reference to the falsehood of the overwhelming rejection again.

 Coburn said, “Their plan includes 1/2 trillion dollars in new tax increases, a 1/2 trillion dollars in cuts to Medicare, job-killing penalties for employers, taxpayer-funded abortion and new boards that will ration care to American citizens.”

A half trillion sounds like much more than 500 billion, and it is meant to.  New taxes?  It depends on which vrsion of the healthcare plan that will be written into law.

The estimated cost over ten years per the Congressional Budget Office (CBO) would be $1,050 billion less $138 billion recovered ($912 billion) for the House plan, and $871 billion less $132 billion recovered ($739 billion) for the Senate plan or a middle figure of $825.5 billion.  Coburn plays on $1 trillion ($1,000 billion), but what’s $175 billion when you are trying to sway people’s opinion.

The several versions of healthcare plans moving around various committees in the House and Senate all have different approaches to pay for healthcare.

In the House version, the tax increases are targeted at the wealthy asessing a surtax on earners making from $280,000 to $800,000 (1 percent) or couples making $350,000 to $1 million (1.5 percent).  Earners making more  than those amounts would have a 5.4 pecent surtax.  Less than 2 percent of the U.S. population falls into those cateories.

This top earner tax is estimated to bring in about $540 billion over 10 years.

There is also expected to be a penalty tax on companies and individuals who refuse to buy government-approved healthcare.  This is to get everyone in the game, since the healthcare numbers work only with large pools of enrollees. 

We can assume that this is the “job-killing” penalties for employers.  The thought is that healthcare costs take away money for jobs.  The alternative might be more jobs without benefits, but it has been repeatedly proven that many people will turn down jobs without benefits. 

Ed.Note:  I am personally against forcing people to have health insurance, but one reeason healthcare costs are so high is that many people don’t take care of their health until they are wheeled into the Emergency Room on a gurney, which is enormously expensive, and costs us all.

The “½ trillion ($500 billion) in cuts to Medicare” are subtly presented as if they were to be cuts in benefits.  This purposely scares seniors by rearranging the words.  In truth, there will be reductions in the future growth of overall Medicare spending, which does not mean cuts in benefit levels or services. 

As far as “taxpayer-funded abortion”, in November 2009, the House passed an amendment to the pending health care bill that prohibits federal funds for abortion services in the public option and in the insurance “exchange” the bill would create.  The Senate bill will allow insurance companies to include abortion coverage, but each state will have the option of preventing federal money from funding abortions.  Senator Coburn is incorrect!

Regarding “new boards that will ration care to American citizens”, we can only guess Senator Coburn is talking about the independent advisory panels which will work to make recommendations on Medicare reforms, including reimbursement to contain the future growth of Medicare.  The Senate bill includes a Medicare Commission which could modify Medicare payments in order to keep down cost growth.

Perhaps he is talking also about “new boards” concerned with halting Medicare fraud.  $60 billion per year are paid out for fraudulent claims by phony companies billing for services never performed on valid Medicare members.  This is another scare tactic, presenting oversight boards as threatening to deny YOUR claim. 

As a side note, containing Medicare fraud for ten years would fund $600 billion of the cost.

According to PolitiFact regarding the rationing of care, “private health insurance companies already ration health care by income, by denying health insurance to those with pre-existing conditions and by caps on health insurance payments. Rationing exists now, and will continue to exist with or without health care reform.” 

David Leonhardt also wrote in the New York Times in June 2009 that rationing is a part of economic reality: “The choice isn’t between rationing and not rationing. It’s between rationing well and rationing badly.

This is another scare tactic, similar to Sarah Palin’s claim that end-of-life choices would be dictated by “death panels” rather than the discussions and planning with your personal physician, as it was written.

Coburn said, “The majority (meaning Democrats) now has a choice. We can continue to make progress like we did at the summit or they can try to ram through a partisan bill that will divide and bankrupt America.” 

Now here are “We,” the white knights again trying to do the right thing, while the evil “they” “try to ram through a partisan bill that will divide and bankrupt America.”

What Senator Coburn does not discuss is that without reform, America is well on its way to bankruptcy now.  But the lack of reform will keep his campaign funders in huge profits, draining the resources of the American people.  Coburn is telling an untruth.

Current spending (2007) on health care in the U.S. is about 16% of its GDP which converts to an estimated $2.26 trillion or $7,439 per person.  With its current upward trend it is expected to reach 19.5% of GDP by 2017 which converts to an estimated $2.75 trillion or $9,066 per person. 

Medical expenditure was a significant contributing factor in 62% of personal bankruptcies in the United States. 

“The Congressional Budget Office (CBO) has argued that the Medicare program as currently structured is unsustainable without significant reform, as tax revenues dedicated to the program are not sufficient to cover its rapidly increasing expenditures. Further, the CBO also projects that “total federal Medicare and Medicaid outlays will rise from 4 percent of GDP in 2007 to 12 percent in 2050.” “According to the Centers for Medicare and Medicaid Services, spending on Medicare will grow from approximately $500 billion during 2009 to $930 billion by 2018.” “And in 2009 the Congressional Budget Office found that the inclusion of a strong public option would lower the cost of health care reform in the U.S. by tens of billions of dollars.” 

Coburn said, “Last year dozens of Democrat-only summits were held in secret behind closed doors and produced many unsavory deals.” 

This is an allegation that requires dates and agendas to avoid people thinking it is simply mud slinging (which it is).  I’m sure Republicans don’t hold their meetings on street corners either, but like to portray Democrats as some sinister secret society.

The question arises, what were the unsavory deals?  Without particulars, this again is unsubstantiated mud slinging.  Coburn is working his audience.

Coburn said, “Had those meetings been open and bipartisan, I believe Congress could have passed a bipartisan health bill months ago. If the president and leaders in Congress are serious about finding common ground they should continue this debate, not cut it off by rushing through a partisan bill the American people have already rejected.” 

There’s that reinforcing rhetoric reference to the falsehood of the overwhelming rejection by the American people again, but he lends it credibility with his “I believe.”

A bipartisan health bill is an impossible goal.  Republicans want to defeat any healthcare bill and discredit the majority party.  The Republicans are in favor of and are funded by big businesses, which want the existing system to continue.  Continuing the debate will delay the action nearer the mid-term elections, when lawmakers who want to be re-elected will move away from a controversial bill.

Coburn said, “If the majority agrees to work together they will find many Republicans ready to help them pursue our common goal of helping all Americans access quality and affordable Health Care for themselves and their families.” 

It is odd that I hear from Washington, nothing except offers from the majority wanting to work together with the Republicans to pursue the common goal.  The difference is that one side wants reform and the other side wants things to stay the same.

The problem big business has with the healthcare plan is that the legislation under discussion would extend coverage care to tens of millions of uninsured Americans while cracking down on insurance company practices such as denying coverage on the basis of pre-existing medical conditions. 

The 46 million without health insurance might be less healthy than the people who work and can afford health insurance, and the people with pre-existing conditions certainly are.  This means that they will probably eat away at the bottom lines of the big business insurance carriers, and they will spend any amount of money buying lawmakers through campaign contributions to defeat it.

While there are two major proposals under consideration in Congress, Democrats have authored and passed both.  Republican Party members in Congress have not come together around a single policy of their own for health care reform other than that of opposing both Democratic bills currently in progress. 

Lawmakers were almost finished merging House and Senate versions of sweeping overhaul legislation when a special election in late 2009 in Massachusetts to fill the late Senator Kennedy’s seat cost Democrats their filibuster-proof Senate supermajority of 60 seats.

Republicans immediately united in opposition to both proposals, casting doubts on the outcome.

Lobbying: America’s health care industry has spent hundreds of millions of dollars in 2009 alone to block the introduction of public medical insurance and stall other reforms proposed by President Obama and by others. There are six registered Health Care  lobbyists for every member of Congress. The campaign against health care system reform has been waged in part through substantial donations to key politicians. The single largest recipient of health industry political donations and chairman of the Senate Committee on Finance that drafted Senate health care legislation is Senator Max Baucus (D-MT).

The clock is ticking toward the mid-term elections in November.  Make no mistake that that election day is the focus of our lawmakers – to continue in their prestigious jobs and build their party’s power base, and they respond without question to the big business campaign fund contributions that can get or keep them there – not the 46 million people without healthcare, and not the 100,000 people who die every year for lack of health insurance. 

It is shameful that our elected officials, and I include all, have forgotten whom they represent. 

Senator Coburn was contacted Friday (Feb 26) by the White House and asked to submit details of suggestions he made to tackle waste and fraud in the medical system, Coburn’s spokesman John Hart said Coburn views Obama’s legislation as a government takeover and would not be able to support it even if it includes some of his proposals.

~~~~~

Listen to the broadcast and make up your own mind.

http://news.yahoo.com/video/us-15749625/18361866

The transcript follows for your convenience. 

“This week I had the opportunity to join President Obama and my Democrat and Republican colleagues for a summit on Health Care.  We had a respectful and constructive discussion.  While we listened to one another, I’m concerned that the majority in Congress is still not listening to the American people on the subject of Health Care reform.  By an overwhelming margin American people are telling us to scrap the current bills, which will lead to a government takeover of Health Care and we should start over.

Unfortunately, even before the summit took place the majority in Congress signaled its intent to reject our offers to work together.  Instead they want to use procedural tricks and backroom deals to ram through a new bill that combines the worst aspects of the bills the senate and house passed last year.

The American people have rejected the majority’s plan for good reason.  Their plan includes 1/2 trillion dollars in new tax increases, a 1/2 trillion dollars in cuts to Medicare, job-killing penalties for employers, taxpayer-funded abortion and new boards that will ration care to American citizens.

The majority now has a choice. We can continue to make progress like we did at the summit or they can try to ram through a partisan bill that will divide and bankrupt America.

I wholeheartedly share President Obama’s desire for more civility and bipartisanship in Washington and I’m proud of the work we did together when he was a member of the Senate.

True civility however is measured by actions not words. I was disappointed the president rejected my suggestion that he host another summit; the president himself proposed that such meetings be televised more than a year ago.

Last year dozens of Democrat-only summits were held in secret behind closed doors and produced many unsavory deals. 

Had those meetings been open and bipartisan, I believe Congress could have passed a bipartisan health bill months ago. If the president and leaders in Congress are serious about finding common ground they should continue this debate, not cut it off by rushing through a partisan bill the American people have already rejected. 

If the majority agrees to work together they will find many Republicans ready to help them pursue our common goal of helping all Americans access quality and affordable Health Care for themselves and their families.”

References:

Health care in the United States
Health care reform in the United States
Health care reform debate in the United States
Public opinion on health care reform in the United States
History of health care reform in the United States

This one was advertising the eBay Success Starter Kit.  The promises included that you would be able to make several hundred dollars a day on eBay.  The kit being sent included free wholesale sources that you can sell on eBay.  They would also instruct you on how to sell other items to people who bought from you.  This is called up selling, a common practice in retail (would you like fries with your burger?)

All this sounds great on the surface.

I decided to do a Google search for “eBay Success Starter Kit review” to check out other people’s experiences with this company.  The fact that the email came to “undisclosed” recipients was my first tip-off that this was suspicious.  I have not had great experiences with companies that do “email blasts” that send out many, perhaps thousands of emails at a time, hoping for some sales from their front page claims and pictures of smiling people.

The initial cost to have the kit sent to you was $1.95, but I think that has now been raised to $2.95, which is not too bad initially.  However, in the small print, if you do not cancel within seven days, you agree to pay $39.95 per month if still enrolled past the seven-day period.

Google comments highlighted some interesting information.

They are selling information readily available on the Internet.  This might be OK for people who do not want to spend the effort to look up the techniques themselves.  eBay is pretty simple, and the site offers extensive education.

The scam is in the timing.  The seven-day period begins the instant you click and agree to the terms.  Even if the kit was mailed at that moment, it would probably take three to five days to arrive giving you maybe two days to evaluate.  Complaints indicate the package is only mailed after the $39.95 is charged to your card.

Comments indicated that the package actually arrives 10-14 days later, past the 7 days, and you are charged $39.95 for the first month.  Even if you call and cancel immediately, they have already charged your credit card.

Complaints also indicated that the customer service number was either always busy or had a recording to wait for the next available agent who never answers.

An actual complaint from my Google search:

“I ordered the eBay success system on May 10, 2009 for $1.95 shipping to try at home risk-free for 7 days.  I received the kit on Friday, May 22, 2009.  I was told I would receive it in 1 to 5 business days.  I received it in 10 business days.  The $1.95 went through my credit card on May 12, 2009.  Five days later on May 17, 2009, before they shipped me the kit for my 7 days risk-free trial a charge for $39.95 went through my credit card.  I was charged before they shipped my 7-day risk free kit.  The customer service number listed on my credit card statement 800-744-2576 has been busy for four days, night and day.  I gave up after four days.  The customer service number listed online is answered by a recording and tells you to hold for the next available agent, but no one ever answer.  I called the number several times and waited for 20 to 25 minutes each time.  It’s a big big scam.  Please do not give these people your credit card information.  Patricia Edwards, West Palm Beach, FL.”

Even if you do not order the kit, there is a “click here if you do not want to receive future offers from us.”  If you do click, you have just given them your name and email address and can expect a FLOOD of scams and offers when they sell your information again and again.

The seven-day scam is a lucrative business for people operating just this side of the law.  The kit probably contains some information that fulfills their cloudy claims.  If a victim pursued their refund through the law, I’m sure they would return the $39.95 after a long time and much effort. 

Most people however will just write it off, and there is where they make their money.  Multiply the $39.95 by a few thousand people that fell for it.  People are ashamed to admit they were taken and will hide the event from their friends and family.

I have experienced a similar seven-day scam myself.  I calculated the timing and that the only way I could get the kit and prevent the monthly charge was to cancel before the seven days.  Even though I had not received the kit, I attempted to cancel.  No contact, and no response from their listed phone number.

Five days after I placed the order, I called my bank and filed a fraud alert, not to accept any more charges from this company.  The bank issued me a verification number in case the bank inadvertently processed a charge.  The only thing that bothered me was that they had my credit card information, but the fraud alert took care of that company. 

My kit contained what they said, but was nothing new.  I would have canceled anyway.

The first person applied to be a “secret shopper” and was sent a check for $3700.  The newspaper account stated the check was deposited into the person’s checking account, and I can only hope it was the victim that deposited it. 

Disclosing personal bank information to unknown strangers is financial suicide, and I believe most banks require a form of identification when depositing money into an account to prevent unauthorized deposits that may later come back and bite the account owner.

However the check was deposited, the victim changed her mind about the offer and looked to return the check.  She sent the full amount back to the sender via Western Union, and although her fund transfer via Western Union was legitimate, the check deposited into her account was bogus and bounced.

My daughter’s boyfriend recently was “selected to participate in a paid Customer Research Program.  It was accompanied by a check drawn on the Wells Fargo Bank, N.A.

The envelope is the first curious item.  The envelope is from Canada, with a Canadian stamp.  The postmark says “Fraud – Prevent it!” in English and French.  With the Canadian postal code of M4L 3T0, it was evidently mailed from metropolitan Toronto.  The printed address , although correct, looked like a child learning to write wrote it.

The envelope contained an official looking check for $3700, drawn by ProStaff, a national HR company (send in your resume) with a bona fide address of 50 South 10^th St., Suite 500, Minneapolis, MN 55405.  The company and address are real, but the zip code is actually 55403.  

The check is drawn on the Wells Fargo Bank, N.A (the last period is missing on the bank name).  The address on the check is Sixth and Marquette, Minneapolis, MN 55479.  I looked up Wells Fargo locations, and although there is a branch near that intersection at 90 S. 7^th St., Wells Fargo is inclined to list their offices with street addresses rather than intersections.

I did find there is a Wells Fargo Bank Minnesota N A at Sixth and Marquette, 55479, and it is an organization affiliated with Wells Fargo, but specializing in Trust, Private Banking, Private Client Services, and Investments.  Checks drawn on that bank would read Wells Fargo Bank Minnesota N A and not Wells Fargo N.A (with a missing period)

With all the inconsistencies, this is shaping up to be very suspicious.  If I were a business, I would not be sending out $3700 checks to people without a strict legal agreement.

Also inside the envelope, is a detailed letter that starts off “Dear Sir/Madam” – not very personal for a person selected to receive a $3700 check.  It is followed by the bolded word Congratulation!!! – Only a single one it seems, not “congratulations” ending in ‘s’ as we who speak the English language tend to produce it.

The letter heading is from Mystique Shopper Survey division with an address of 1617 Lonsdale Ave, North Van, CA (no zip code) Fax: 1806-398-2259.  I looked up the Mystique Shopper LLC located at PO BOX 121001 Clermont, FL 34712, (813) 322-3228.  I also did a review check on Mystique Shopper, and it seems to be a legitimate secret shopping company who has been an unwitting partner in a large “scam” (click hotlink to read news story) where the scammers are using Mystique’s name with a different address.

The email on the letterhead is: shoppersurvey@live.co.uk — an MSN Livemail based in the UK.

Of course, by this time, I am firmly convinced of the scam.  The envelope is mailed from Canada, crudely hand addressed, the inconsistencies and tiny errors on the check, the different address from the legitimate company and the UK email address all point to postal fraud. 

The setting of the hook comes when victims, who may be greedy for easy money or desperate to make money see the $3700 check.  The terms say the secret shopper should spend $150 at Wal-Mart and $150 at Sears and keep the receipts.  They should also have lunch at McDonald’s or Wendy’s and spend $50 as a lunch bonus with no receipt required.

The real kicker is that the victim must wire a Moneygram for $1500 and a Western Union transfer for $1400 to an address to be disclosed when the victim calls to start the process.  To prevent the deposit of the check too early, the letter warns there is a “security code” on the check and instructions how to remove it will be given during the call.

Legitimacy is hinted at by using the heading of a legitimate company and a realistic-looking check drawn on a well-known bank. 

Timing is everything here.  The process starts with the phone call.  Instructions are given how to deposit the check, and I’m sure that the spending should occur within a three-day window, after which the check will bounce.  By this time, the $2900 for the Moneygram and Western Union will have been sent with real money from the victim’s account, and perhaps an extra day or two will be added if the victim does the Wal-Mart and Sears shopping first.

If the victim’s bank is dumb enough to accept the check without noticing some of the errors, we can also be sure they will disavow any responsibility when it bounces, except to pile enormous fees on the victim for the returned check.

If the victim kept the receipts for Wal-Mart and Sears, they can at least return those items for credit.  It is my opinion that threatening the bank with filing a complaint with the State Banking Authority for knowingly accepting a fraudulent check will likely erase the fees.

So the victim is out $2900 plus lunch at McDonald’s or Wendy’s.

It’s a sad commentary that even when scammers are caught, they don’t feel guilty because they feel they are just taking an opportunity offered by  greedy persons.

The very sending of a fraudulent offer through the US Postal Service carries extremely stiff criminal penalties, so the receipt of a scam should be reported.  Many people are so embarrassed to have been taken, they keep it to themselves, and thus become an advocate of the scammer.

As for me, I don’t have $2900 in my account.
 

Another scam I read about concerns people who write checks, whether bills or donations and leave the envelope in their unsecured roadside mailbox for the postal person to pick up.

Unfortunately, the postal person is not the only one who looks in your unsecured mailbox.  There is a growing trend of thieves who go through a neighborhood at night, checking all mailboxes with the flag raised and removing any mail waiting for the postal person. 

There is a high probability there is a check inside, which can be altered through the use of chemicals which dissolve the ink, and cashed for a much higher amount.  This is known as “check washing” using alcohol or acetone (paint thinner) to completely remove the ink. 

Some simple steps to keep your checks safe are to use a Gel-based pen (difficult to wash off the ink), and to never leave a check in an unprotected mail pickup spot.